PIMCO Plans New Alternatives Push

Aug 29 2013 | 12:35pm ET

The world's biggest bond-fund manager is set to take advantage of new hedge-fund advertising rules.

Pacific Investment Management Co. plans a major expansion of its alternative investments business and is already preparing a new offering that will be available to retail investors with a $1,000 minimum investment, The Wall Street Journal reports.

Douglas Hodge, PIMCO's chief operating officer, told the Journal that alternatives are "a very important area for us," one made even more attractive by the lifting of an 80-year-old ban on hedge-fund advertising that takes effect next month.

"The world is going to change he because of the JOBS Act," he said.

Earlier this month, PIMCO filed a preliminary prospectus for a new liquid alternative fund that will invest in interest-rate, currency, mortgage, credit and commodity derivatives. The Pimco Trends Managed Futures Strategy Fund will have a retail share class with a $1,000 minimum, akin to a mutual fund.

Hodge said that the decision to expand its alternatives business—PIMCO already runs a $29 billion alternative bond fund—is a result of client demand.


In Depth

Malik: The Science of Deal Sourcing 201

Aug 27 2015 | 5:35pm ET

Deal sourcing is understandably a hot topic among private equity firms because it...

Lifestyle

Rolling Art Advisors Marketing Collectible Car Fund As Uncorrelated Alternative

Aug 27 2015 | 6:47pm ET

A new fund is trying to provide investors with greater access to an emerging asset...

Guest Contributor

Agecroft Partners: Hedge Fund Industry Assets to increase $250B by Summer 2016

Aug 11 2015 | 11:29am ET

Assets will continue to flow into the hedge fund industry despite long-standing...

 

Editor's Note